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Quantchabot has detected a promising Bull Put Spread trade opportunity for MARSH & MCLENNAN (MMC) for the 16-Jul-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
MMC was recently trading at $135.34 and has an implied volatility of 16.70% for this period. Based on an analysis of the options available for MMC expiring on 16-Jul-2021, there is a 34.13% likelihood that the underlying will close within the analyzed range of $135.37-$145.96 at expiration. In this scenario, the average linear return for the trade would be 42.86%.
52 week high: MARSH & MCLENNAN recently reached a new 52-week high at $136.35. MMC had traded in the range $93.40-$136.11 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if MMC maintains its current direction and does not revert back to pricing on the bearish side of $135.34 on 16-Jul-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if MARSH & MCLENNAN closes at or above $133.50 on 16-Jul-2021. Based on our risk-neutral analysis, there is a 57.32% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.